National Market System Plans
The Securities and Exchange Commission (the “Commission” or “SEC”), at 17 C.F.R. 608(a)(8), requires Cboe and other self-regulatory organizations (“SRO”s) to publish, on its website, the National Market System (“NMS”) Plans in which each participates. Below are links to the websites that include copies of each of the applicable NMS Plans of which one or more Cboe securities exchanges are members, along with related information.
Participants or sponsors of an NMS Plan must ensure that any proposed amendments are posted to a designated website after filing the amendments with the Commission, and that those websites are updated to reflect the current status of the amendment and the NMS Plan. Each plan participant or sponsor must also provide a link on its own website to the current version of its NMS Plan.
The SEC maintains a file number list of NMS Plans at the following link: https://www.sec.gov/rules/sro/nms.htm#filehead
Consolidated Audit Trail (“CAT”) NMS Plan
The CAT NMS Plan governs the development, implementation and maintenance of the Consolidated Audit Trail. The CAT tracks orders throughout the order lifecycle (including modification, cancellation and execution) and identifies the broker-dealers handling them for all eligible securities on the U.S. markets.
[July 24, 2020 Order approving Amendment ]
Consolidated Tape Association Plan/Consolidated Quotation Plans (“CTA/CQ” Plans)
Cboe Options, BZX, BYX, EDGX and EDGA are parties to the CTA/CQ Plans, which govern the collection, processing, and dissemination of quotation and transaction information for exchange-listed securities (excluding those securities listed on the Nasdaq Stock Exchange). The data reflected on the consolidated tape (Networks A – for New York Stock Exchange LLC, and B – for NYSE American LLC, NYSE Arca, Inc., Cboe BZX Exchange, Inc., and other regional exchanges) are sourced from various market centers, including securities exchanges, FINRA, electronic communications networks (ECNs), and other broker-dealers. Under the CTA/CQ Plans, all U.S. exchanges, associations, and market centers that quote and trade exchange-listed securities must provide their data to a centralized securities information processor (SIP) for data consolidation and dissemination.
10/1/2020 35th Substantive Amendment to the Second Restatement of the CTA Plan and 26th Substantive Amendment to the Restated CQ Plan.
Extraordinary Market Volatility NMS Plan (Limit Up-Limit Down or “LULD” Plan)
This plan governs the establishment, operation and administration of a market-wide LULD mechanism that is intended to address extraordinary market volatility in NMS stocks, as defined in Rule 600(b)(47) of Regulation NMS under the Exchange Act. The Plan sets forth market-wide Limit up-Limit down requirements designed to prevent trades in individual NMS Stocks from occurring outside of the specified price bands. These LULD requirements would be coupled with Trading Pauses, as defined in Section I(X) of the Plan, to accommodate more fundamental price moves.
Tier 1 LULD List of ETPs
20th Amendment April 21, 2020
Intermarket Symbol Reservation Authority (“ISRA”) NMS Plan
The ISRA NMS Plan establishes a uniform system for the selection and reservation of securities symbols under the Exchange Act. This plan allocates one to five character root symbols used to identify common stocks and other securities, including options, to self-regulatory organizations (SROs) that have joined the plan A web-based tool (the “Symbol Reservation System”) was developed for such purpose and is maintained by the Options Clearing Corporation at https://www.theocc.com/Clearance-and-Settlement/Industry-Services.
Options Listing Procedures Plan (“OLPP”)
The U.S. options exchanges, including Cboe Exchange, Inc., Cboe BZX Exchange, Inc., Cboe C2 Exchange, Inc., and Cboe EDGX Exchange, Inc., and the Options Clearing Corporation are sponsors of the Options Listing Procedures Plan, an NMS plan that describes procedures to be followed by the parties in connection with selecting specified underlying interests for listing purposes and requesting a review of such selections. It also includes procedures for selecting options series, determining operational procedures relative to adjustment decisions, and admitting and removing plan sponsors.
Options Order Protection and Locked/Crossed Market Plan
Cboe Options, C2, BZX, and EDGX (and all other registered U.S. options exchanges) are parties to the Options Order Protection and Locked/Crossed Market Plan. Pursuant to the plan, the Participants jointly established a framework for providing order protection and addressing locked and crossed markets in eligible options classes to enable brokers to execute investors’ orders at the best exchange price. In addition, the plan provides a non-exclusive method for achieving order protection and addressing locked and crossed markets. In accordance with the established framework, all registered U.S. options exchanges are linked together in real-time via an order and messaging network designed to facilitate the routing of orders between exchanges in furtherance of a national market system.
Options Order Protection and Locked/Crossed Market Plan
Options Price Reporting Authority (“OPRA”)
Cboe Options, C2, BZX, and EDGX are member exchanges in OPRA, which is the designated securities information processor for the dissemination of consolidated last sale and quotation information from U.S. options. NYSE Technologies acts as the “processor” for OPRA.
Options Regulatory Surveillance Authority (“ORSA”) Plan
Under the ORSA plan, U.S. securities options exchanges, including Cboe Options, C2, BZX, and EDGX, are permitted to act jointly in the administration, operation and maintenance of a regulatory system for the surveillance, investigation and detection of the unlawful use of undisclosed, material information in trading in one or more of their markets. The ORSA Plan is intended to enhance the effectiveness and efficiency with which the exchanges regulate their respective markets and to avoid duplication of certain regulatory efforts. FINRA operates the ORSA Plan facility.
OTC Unlisted Trading Privilege (“OTC UTP”) Plan
Cboe Options, BZX, BYX, EDGA and EDGX participate in the OTC UTP Plan, which is a joint SRO plan governing the collection, consolidation, and dissemination of quotation and transaction information for NASDAQ-listed securities traded on exchanges on an Unlisted Trading Privilege basis. Under the OTC UTP Plan, all participants (including registered U.S. securities exchanges, FINRA, ECNs, and other broker-dealers), which also administer the Plan, that quote and trade NASDAQ-listed securities must provide their data to a centralized Securities Information Processor (SIP) for data consolidation and dissemination.
7/29/2020 48th Amendment to Joint SRO Plan
Rule 605 NMS Plan
Rule 605 of Reg NMS generally requires a market center that trades NMS stocks to make electronic execution reports publicly available on a monthly basis, including uniform statistical measures of execution quality. This plan establishes procedures under Rule 605, which was originally adopted in November 2000 as Rule 11Ac1-5 under the Securities Exchange of 1934. In 2005, Rule 11Ac1-5 was re-designated as Rule 605 with the adoption of Regulation NMS.